Bill Text: MI SB0947 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Property tax: exemptions; exemption for certain heavy equipment; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 9p. TIE BAR WITH: SB 0946'20
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-06-02 - Referred To Committee On Finance [SB0947 Detail]
Download: Michigan-2019-SB0947-Introduced.html
SENATE BILL NO. 947
June 02, 2020, Introduced by Senator MACGREGOR
and referred to the Committee on Finance.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
(MCL 211.1 to 211.155) by adding section 9p.
the people of the state of michigan enact:
Sec. 9p. (1) Beginning December 31, 2020 and each year thereafter, qualified heavy equipment rental personal property for which an exemption has been properly claimed under section 4 of the qualified heavy equipment rental personal property specific tax act is exempt from the collection of taxes under this act.
(2) As used in this section:
(a) "Affiliate" means a person that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person.
(b) "Control" means direct or indirect possession of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.
(c) "Own" or "ownership" means to have ownership of an equity interest, or the equivalent, of 10% or more in a person.
(d) "Person" means an individual, corporation, limited liability company, partnership, association, or any other legal entity.
(e) "Qualified heavy equipment rental personal property" means any construction, earthmoving, or industrial equipment that is mobile and rented to customers by a qualified renter, including attachments for that equipment or other ancillary equipment or tools designed and used primarily for construction or industrial purposes. Qualified heavy equipment rental personal property does not include handheld tools or equipment solely designed for industry-specific uses in oil and gas exploration, mining, or forestry. For purposes of this subdivision, equipment is mobile if it is not intended to be permanently affixed to real property for its intended use and can be moved among worksites. Qualified heavy equipment rental personal property includes, but is not limited to, any of the following:
(i) A self-propelled vehicle that is not designed to be driven on the highway.
(ii) Industrial electrical generation equipment.
(iii) Industrial lift equipment.
(iv) Industrial material handling equipment.
(v) Industrial portable heating, ventilation, and air conditioning equipment.
(vi) Industrial compressors, generators, or pumps.
(vii) Equipment used in shoring, shielding, and ground trenching.
(viii) Equipment or vehicles not subject to titling under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(f) "Qualified renter" means a person that meets both of the following:
(i) Is engaged in a line of business described in Code 532412 or 532310 of the North American Industry Classification System published by the United States Census Bureau, 2017 edition.
(ii) Primarily rents qualified heavy equipment rental personal property to the public and not primarily to an affiliate for use directly by that affiliate. For purposes of this subparagraph, an affiliate is not considered directly to use qualified heavy equipment rental personal property if it in turn rents the property to the public.
(g) "Rent" or "rental" means entering into an agreement for the use of property in exchange for consideration for a term of less than 365 consecutive days, or under an open-ended contract.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 946 of the 100th Legislature is enacted into law.
